Cofounder CEO left seed stage healthcare startup. How much equity for a new CEO?

4 points by philko90 3y ago ↗ HN

I'm the other cofounder / CTO of the seed stage startup and we've been running the company for a year. My cofounder CEO is parting amicably with the company and is willing to return some vested equity back to help the company find a new CEO. Our VC investors are aligned that I should find a replacement CEO. Since we're at a seed stage, I'd like to bring in a new CEO though I'm unsure on how much equity they should get based on their experience.

I'm guessing the possible likely cases for an incoming CEO could be: CEO who raised at seed stage before CEO who sold previous company at seed stage CEO who raised Series A before but shut down company / left previous company CEO who sold company at Series A

For the cases above, what's a general expectation for equity for an incoming CEO?

3 comments

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ninotheopsguy 3y ago ↗

return "some vested equity"? I hope they return most of it, what a bad situation... the company now without one of its cofounders must be so different as to probably make it worth to found another one with just you (and the new CEO.)

The problem you are facing will be adjusted by the market (when you actually go try and get a new competent CEO.) That is, if you offer little equity you'll have no-one wanting to join and you will have to adjust. I imagine it should be a considerable portion.

But this is also not ideal, what about you being the CEO and CTO at the same time? Or, better, you being the CEO and hiring someone technically strong to do most of your "CTO" job (as head of technology)

faangiq 3y ago ↗

Sounds impossible, probably best to fold the company.

bruceb 3y ago ↗

A little more info is needed. How many employees are there? What salary could the company offer? Revenue?